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James Taylor writes:
> Speaking of inflation, let's just keep ignoring the absolute rampant asset
> price inflation
> we have seen over the last 15 years. Housing prices jumping 15-20% per
> year in the West Coast alone,
> and the massive stock market bubble still defying gravity.
>
> Let the panic selling commence.
James, comments like that are why most of us have a hard time taking
you seriously. A good argument can be made that inflation is increasing
and assets are overvalued. But when you exagerate and distort the facts
people tend to dismiss anything of value you have to say. A quick check
of
http://www.dismal.com/cgi/forecasts.asp?View=Real+Estate&Frequency=Annual
will show the annual increase in the median price of an existing home
for the whole US measured in Q2. The source is the National Association
of Realtors which has a vested interest to 'pump' the numbers rather
understate them. The numbers are underwhelming by historical standards.
1998 5.4%
1999 3.9%
2000 3.3%
I don't know how many times I have to repeat it but the Bay Area ain't
the good old US of A. Some people might even question if it is part of
Planet Earth but that's another story. :-)
--
Dennis
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